March 10, 2017

State Tax Collections Surge Due To Underestimated Sales Taxes

Original story from   IPBS-RJC

Article origination IPBS-RJC
State Budget Agency offices at the Statehouse. - Brandon Smith/IPB

State Budget Agency offices at the Statehouse.

Brandon Smith/IPB

Indiana took in $134 million more in taxes last month than fiscal analysts predicted – that’s 20 percent better than projections, the best performance in nearly two years.

The surge was driven primarily by sales tax collections, which came in more than $96 million better than expected. That’s 250 percent above predicted levels. The State Budget Agency says it’s due to a complicated underestimation involving last year’s revenue numbers and the number of paydays in the previous month.

Overall, sales tax numbers for the entire fiscal year are just slightly ahead of projections, as are individual income tax collections. Corporate taxes continue to lag behind expectations.

Lawmakers will receive a new revenue forecast in April, just days before they’re expected to finalize a new two-year state budget.

Support independent journalism today. You rely on WFYI to stay informed, and we depend on you to make our work possible. Donate to power our nonprofit reporting today. Give now.

 

 

Related News

More Afghans arriving in Indiana to await resettlement
Indiana joins others in objecting to USA Gymnastics settlement plan
During the first year of the pandemic, Boone County saw huge growth in filled jobs